WASHINGTON — The Senate’s top Republican taxwriter has introduced legislation that would block the stripping and selling of tax credits from three kinds of tax-credit bonds. At the same time, Treasury Department and Internal Revenue Service attorneys are working to write stripping rules sought by muni market participants who contend they are needed to jump-start the programs.

Sen. Charles Grassley, the ranking minority member of the Senate Finance Committee, has introduced two bills that would extend programs for qualified zone academy bonds, qualified school construction bonds, and new clean renewable energy bonds. However, the Iowa Republican’s bills, which he introduced last month, also include provisions that would prevent the stripping of credits from the bonds.

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